Top stories this week *HBF meets with the Monetary Policy Committee (MPC)....read more *Mortgage lenders predict 7% fall in house prices.....read more *Yorkshire and Humber RSS published.....read more Top stories this weekHBF meets with the Monetary Policy Committee (MPC)....read moreMortgage lenders predict 7% fall in house prices.....read moreYorkshire and Humber RSS published.....read moreQuick LinksHeadline NewsHousing Market NewsPolitical NewsIndustry NewsHBF NewsOther NewsEvents Headline NewsHBF meets MPCHBF arranged for a group of senior industry representatives to meet members of the Monetary Policy Committee this week to discuss the current state of the market and its implications for the economy, industry jobs and future house building levels.to topMortgage lenders predict 7% fall in house pricesThe Council of Mortgage Lenders published its updated housing market forecasts for the rest of 2008. In brief, the CML now expects:House prices to be around 7% lower at the end of the year than at the end of 2007; Property transactions in England and Wales to be around 35% lower than last year at 770,000; Gross lending to be around 21% lower than last year at £285 billion; Net lending to be half last year's level at £55 billion; and Bank base rate to end the year at 4.75%.View full statement and detailed report to topYorkshire and Humber RSS published The Yorkshire and Humber Plan has been published by the Government. It confirms higher housing growth figures to deliver over 22,000 homes each year from now until 2026. Development is to be focussed on the 'Regional Cities' of, Hull, Leeds, Sheffield and Bradford; and eleven sub regional towns - Barnsley, Doncaster, Rotherham, Halifax, Huddersfield, Wakefield, Scunthorpe, Grimsby, Harrogate, Scarborough and York. Limited growth is provided for in the 3 rural areas of Craven, Hambleton and Ryedale.Commenting, Communities Minister, Baroness Andrews said:"Beyond the short term squeeze of the credit crunch the population is still ageing with more people choosing to live alone which means new households are growing faster than new homes. If more homes are not built now in Yorkshire and Humber the housing ladder will get even further out of reach leaving the next generation with nowhere to live.""This plan represents a key milestone in tackling housing pressures for the people of Yorkshire and Humber. It will deliver the affordable housing, better transport networks, stronger environmental protections and new jobs that the region needs."View the full statement HBF comment: we welcome the move to increase the housing provision within the RSS. HBF objected to the overall numbers of homes originally proposed in the RSS as being too low and to the distribution of numbers. This revised plan has taken into account our comments that the figures be increased to more accurately reflect latest statistics on households in the region. This viewpoint is also reflected by Baroness Andrews in her comment.to topCPRE express dismay In its response to the Yorkshire and Humber RSS, CPRE asserted that "... we cannot simply build our way out of what is essentially an affordability problem. With the growing importance of food security and in an era of future climate change, rather than squander scarce land resources on building ever more homes, the focus should be on providing the affordable homes the region actually needs."Read more to topHousing Market NewsRightmove's May 2008 House Price Index shows an increase of 1.2% from April 2008, although regional differences reveal a mixed national pictureThe Index, published 19th May, states:‘Discretionary spring sellers' of larger homes in the south push up average national prices, and mask year on year falls in six out of ten regionsAverage asking prices of newly marketed property increase by 1.2% (£2,879), hitting a new record of £242,500New seller pricing now 0.3% (£858) above peak boom prices, delaying return to buyer affordability and recovery in sales volumes"Mortgage tap ‘turned off' in April as lenders play it safe and look after number one, rather than work together to help the housing market"Read the full report Nationwide sees 40% fall in mortgage lendingNationwide Building Society, one of the country's largest mortgage lenders, cut net residential mortgage lending by 40% in 2007, to £6.7 billion. Lending volumes were contained to match retail deposits which reached £9.1 billion, a 19% market share. Nationwide said it had "an inherently conservative business model with a strong capital base, high levels of retail funding and a low loan to deposit ratio".Read more Activity in the buy-to-let (BTL) sector weakenedAccording to a Housing Market Data Response produced by Capital Economics, BTL lending activity has suffered a steep fall and they see little prospect of recovery in the near future. They report that:Including remortgaging activity, there were 74,800 new BTL loans advanced in 2008 Q1, 8% lower than in the same period a year earlier and almost 20% down on the 2007 Q3 peak Focusing only on new loans for house purchase: 33,590 BTL mortgages were advanced in 2008 Q1. This was a fall of 22% year-on-yearBTL advances were 31% lower than the high point reached in the third quarter of 2007For more details to topPolitical News CLG Select Committee publish report on rented housingIn a report published this week, titled "The Supply of Rented Housing", the Communities and Local Government Select Committee called for 50,000 more homes a year to be provided in the social rented sector.The report finds that:"An increase in the supply of social rented homes of some 50,000 a year will be necessary to reduce significantly the backlog in demand. Despite recent increases in spending, current rates of building are below this level; all providers of social rented homes need sufficient encouragement, resources and flexibility to increase supply. The Government must be prepared, if necessary, to raise investment in new supply still further. Section 106 agreements have made a significant contribution to the increased supply of social rented homes, but they have resulted in too great a proportion of new social housing built as flats, rather than accommodation suitable for families: action is needed to ensure that new affordable housing is directed at the areas of greatest need." The Committee also raised concerns about the impact of Buy-to-Let on the housing market and called for steps to help guard against such properties being left empty.View the full report The National Landlords Association (NLA) commentDavid Salusbury, Chairman of the NLA said:"Rented housing should not be seen as second-best. According to Government figures, 81 per cent of tenants are on good terms with their landlords and it is good to see that the significant contribution landlords make to the housing mix has once more been acknowledged.Where people are suffering at the hands of irresponsible rogue landlords in sub-standard rental accommodation, local authorities should be using the existing statutory powers they have in order to force the necessary improvements to be made."View full statement to topIndustry NewsThe Construction Confederation's latest Working Rule AgreementThe report on the latest Working Rule Agreement which sets out the basic rates of pay, allowances and additional payments that will come into effect from Monday 30th June is now available.Read the full reportHealth Protection Agency Board gives advice on radon measures for new homesThe Board of the Health Protection Agency, having considered a paper from its Radiation Protection Division, has recommended that UK Building Regulations and Standards should be changed to ensure that all new property incorporates the basic materials and measures necessary to reduce internal radon levels. This will apply also to new extensions and to any other changes to property where the Building Regulations and Standards apply.More information to topHBF NewsHBF and NHBC give evidence to Environmental Audit CommitteeHBF and NHBC gave oral evidence to the House of Commons Environmental Audit Select Committee's current inquiry "Greener homes for the future? An environmental analysis of the Government's house-building plans" on 20th May. The Committee raised issues concerning the practicality and progress of delivering the Government's targets on both housing numbers and zero carbon standards, including the impact of current market conditions. The costs, consumer issues, definition and energy supply requirements and options for zero-carbon homes were also discussed. The hearing was an opportunity to represent the work being undertaken by the industry, as well as to flag up the very real challenges involved on zero carbon, including its impact on the overall regulatory cost burden facing companies. HBF also set out the additional risk to delivery that current conditions posed.Council Tax on Empty New PropertiesHBF met Treasury tax officials this week to review a range of tax issues, including inconsistent and over-zealous local authority application of council tax to empty new properties. This is proving particularly onerous for home builders in the current severe market conditions. While council tax is a CLG matter, HBF has agreed to provide further information to Treasury. HBF contact: Stanley Jackson stanley.jackson@hbf.co.ukBuilding Regulations Part LAs part of the preparatory work for the forthcoming 2010 and 2013 updates of Part L of the Building Regulations a Domestic Industry Advisory Group has been set up by CLG. The aims of the group are to look at the key issues arising out of the 2006 revision, the factors that need to be addressed through the 2010 and 2013 Part L updates and the programme required to deliver the updates. HBF are represented on this group and also sit on 3 of the 4 working parties set up by the group. BRAC working groups have been set up for Part L and F which HBF are also actively involved with.Building Regulations Part G consultationCLG have issued a consultation document for Part G of the Building Regulations. It is intended that the proposed new document will be titled ‘Sanitation, Hot Water Safety and Water Efficiency' HBF are setting up a working group to look at and respond to this document. The closing date for responses is 5th August 2008. Anyone wishing to be on the working group should contact dave.mitchell@hbf.co.ukto topOther NewsCPRE publish new research advocating higher density According to the CPRE report "The Proximity Principle: why we are living too far apart" the Government's housing policy is failing to deliver sustainable urban and rural communities as densities are too low and housing is insufficiently focused in existing towns and villages. Becky Willis, author of the report commented: "Despite the advantages of proximity, Gordon Brown's housing policy is causing greater dispersal, by promoting new ‘eco-towns' outside existing settlements and refusing to provide incentives for development within existing towns and villages. This report suggests that housing policy should focus on supporting existing communities.'View full report to topEvent NewsHBF South West Ball - Saturday 7 June Beaufort Polo Club, TetburyFurther information and booking form Water: Regulation changes and the Code - Practical SolutionsTuesday 15 July, Thinktank, BirminghamThe Government is seeking a major step change in water efficiency in new homes.This seminar will examine the proposals enshrined in the amended Building Regulations Part G now subject to consultation, as well as the water aspects of the Code for Sustainable Homes and ways of securing maximum points to achieve higher Code levels. Book onlineFor other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to topRosie HinchliffeView Previous Weekly News Summary
